MANILA – Philippine Airlines Holdings Inc said Thursday it incurred a net comprehensive loss of P73 billion for the year 2020 reflecting the “extraordinary impact” of the COVID-19 pandemic on operations of subsidiary Philippine Airlines.
The Lucio Tan-led carrier is also currently working on a restructuring plan, PAL Holdings said in a disclosure to the stock exchange.
Total revenues reached P55.3 billion, dropping 64 percent, while expenses for the year stood at P81.8 billion, down 46 percent compared to 2019, PAL Holdings said.
Philippines Airlines management and stakeholders “are working in the final stages of a comprehensive restructuring plan to enable the airline to emerge financially stronger from the current global crisis,” the statement said.
“We are confident that the restructuring will enable PAL to strengthen its capital structure, meet stakeholder obligations and position the company for long-term success,” it added.
Details will be disclosed once finalized, it said.
PAL said flights and operations won’t be affected by any restructuring. It will continue increasing flights as the market recovers and restrictions ease.
Website FlightGlobal earlier reported that the company informed its lessors that it was planning to file for Chapter11 bankruptcy protection in the US.
All commercial flights in the Philippines were temporarily suspended in April, May and part of March 2020 due to the lockdown imposed to limit the spread of COVID-19. Varying restrictions have been in place since then.
To mitigate the pandemic impact, PAL implemented cost-cutting measures and has drawn bridge funding, deferred payments through the forbearance of lessers, lenders and suppliers, and carried out a retrenchment program, it said.
The global airline industry recorded its “sharpest drop in history” last year with a total of P6.1 trillion loss in 2020 due to the 65.9 percent decline in airline passenger traffic, according to the International Air Transport Association (IATA).